# Ag Markets Feel Pinch As Oil Prices Plunge - ProAg

> Agricultural markets fell as crude oil plunged following a Saudi-Russia price war, with sugar down as much as 6.5%, palm oil down 11%, and European rapeseed down more than 3%. Shares of U.S. ethanol maker Green Plains dropped 43% and fertilizer producer Nutrien hit an all-time low.

- Date: 2020-03-11 · published 2020-03-11T12:00:00.000Z
- Category: macro · region Global · magnitude medium
- Page: https://feedsoft.ai/events/54223-ag-markets-feel-pinch-as-oil-prices-plunge-proag
- Commodities: [Crude Oil (WTI)](https://feedsoft.ai/c/WTI.md), [Crude Oil (Brent)](https://feedsoft.ai/c/BRENT.md), [Corn](https://feedsoft.ai/c/CORN.md), [Palm Oil](https://feedsoft.ai/c/PALMOIL.md), [Soybean Oil](https://feedsoft.ai/c/SBO.md)

## Why it matters

Lower crude prices weaken the biofuel demand link for corn, sugar, vegetable oils and rapeseed, pressuring farm commodity prices. Lower energy costs also weigh on the outlook for fertilizer and ethanol margins.

## Read by commodity

- SBO: bearish ▼
- WTI: bearish ▼
- CORN: bearish ▼
- BRENT: bearish ▼
- PALMOIL: bearish ▼

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| PALMOIL | 2020-03-11 | 5 | -8.7% | -3.4 | On March 9-10 crude's crash on the Saudi-Russia price war pulled palm oil down about 11%, which weakens the biodiesel link and sentiment and falls squarely in the 5-day window. |
| SBO | 2020-03-11 | 5 | -10.1% | -4.4 | Ag markets, including palm oil down 11%, fell with crude after the price war; palm is a close soyoil substitute, so its drop transmitted to soyoil. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| WTI | 2021-08-19 | [Falling oil prices increase pressure on oilseed markets](https://feedsoft.ai/events/11363-falling-oil-prices-increase-pressure-on-oilseed-markets.md) | +4.7% | +11.1% |
| WTI | 2018-12-24 | [Oil plunges 6 percent as economic slowdown fears grip market](https://feedsoft.ai/events/8700-oil-plunges-6-percent-as-economic-slowdown-fears-grip-market.md) | -0.5% | +15.7% |
| WTI | 2018-02-02 | [Oil prices fall as US stock market slumps and dollar strengthens](https://feedsoft.ai/events/66659-oil-prices-fall-as-us-stock-market-slumps-and-dollar-strengthens.md) | -7.0% | -7.1% |
| WTI | 2018-12-24 | [Plunging oil prices show the market is worried about 2019 recession](https://feedsoft.ai/events/8701-plunging-oil-prices-show-the-market-is-worried-about-2019-recession.md) | -0.5% | +15.7% |
| WTI | 2020-04-30 | [Palm oil futures plunge](https://feedsoft.ai/events/11551-palm-oil-futures-plunge.md) | +58.9% | +123.9% |
| BRENT | 2020-04-21 | [Brent oil futures plunge as growing glut feeds market panic](https://feedsoft.ai/events/4477-brent-oil-futures-plunge-as-growing-glut-feeds-market-panic.md) | -17.3% | +61.6% |
| BRENT | 2021-08-19 | [Falling oil prices increase pressure on oilseed markets](https://feedsoft.ai/events/11363-falling-oil-prices-increase-pressure-on-oilseed-markets.md) | +5.5% | +9.8% |
| BRENT | 2018-12-24 | [Oil plunges 6 percent as economic slowdown fears grip market](https://feedsoft.ai/events/8700-oil-plunges-6-percent-as-economic-slowdown-fears-grip-market.md) | -1.3% | +15.8% |

## Sources

- proag.com: https://www.proag.com/news/ag-markets-feel-pinch-as-oil-prices-plunge/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.